NOTE 16 COMMITMENTS AND CONTINGENCIES

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Reclamation obligations

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As part of its ongoing business and operations, the Company is required to provide bonding for its environmental reclamation obligations. As at March 31, 2026, the Company had surety facilities in place to cover its bonding obligations, which include $35.8 million of bonding in Nevada pertaining primarily to the Tonkin and the Gold Bar properties and $13.6 million (C$18.9 million) of bonding in Canada with respect to the Fox Complex.

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The terms of the facilities carry an average annual financing fee of 2.4% and require an average deposit of 7.2%. Surety bonds are available for draw-down by the beneficiary in the event the Company does not fulfil its reclamation obligations. If the specific reclamation requirements are met, the beneficiary of the surety bonds will release the instrument to the issuing entity. The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements, through existing or alternative means, as they arise. As at March 31, 2026, the Company recorded $4.4 million in restricted cash in non-current assets as a deposit against the surety facility (December 31, 2025 – $4.2 million).

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Flow-through eligible expenses

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On December 19, 2025, the Company completed a flow-through share issuance for gross proceeds of $5.1 million. The proceeds of this offering will be used for the continued exploration and development of the Company’s properties in the Timmins region of Canada. The Company expects to fulfill its CEE obligations from this offering by the end of 2026.

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On January 22, 2026, and January 28, 2026, the Company completed flow-through share issuances for gross proceeds of $7.3 million and $8.1 million, respectively. The proceeds of this offering will be used for the continued exploration and development of the Company’s properties in the Timmins region of Canada. The Company has fulfilled its obligations related to the January 22, 2026, issuance and expects to meet the remaining CDE obligations by May 31, 2026.

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Prepayment agreement

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On February 10, 2025, the Company extended the existing precious metals purchase agreement with Auramet International LLC. Key terms of the agreement remained unchanged. Under this agreement, the Company may sell the gold and silver contained in doré bars produced at the Gold Bar Mine Complex, Fox Complex and El Gallo prior to the completion of refining on a Spot Basis, on a Forward Basis, on an In-Process Basis, and Prepayment Basis i.e., the gold is priced and paid for while the gold is:

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During the three months ended March 31, 2026, the Company received net proceeds of $34.4 million from the sales on a Supplier Advance Basis (three months ended March 31, 2025 – $27.8 million). During the three months ended March 31, 2026, the Company recorded revenue of $32.6 million related to the gold sales (three months ended March 31, 2025 – $29.8 million) with the remaining $1.8 million representing 400 ounces pledged but not yet delivered to Auramet (March 31, 2025 – $1.5 million representing 500 ounces pledged but not yet delivered) recorded as a contract liability on the Consolidated Balance Sheets.

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Other potential contingencies

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The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment, and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations.

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The Company and its predecessors have transferred their interest in several mining properties to third parties throughout its history. The Company could remain potentially liable for environmental enforcement actions related to its prior ownership of such properties. However, the Company has no reasonable belief that any violation of relevant environmental laws or regulations has occurred regarding these transferred properties.